UPDATE: Camille Fesses Up About Kelsey Cross-Dresser Rumor

Before their divorce gets any uglier, Camille Grammer has set the record straight about the implication she made during a Howard Stern interview that her soon-to-be-ex-husband Kelsey Grammer was into cross-dressing.

“It was a joke,” the 42-year-old “Real Housewives” star tells Entertainment Tonight. “No, Kelsey is not a cross-dresser,” Camille (finally) confirmed. “It is just sad that people don’t realize it was a joke. I think it maybe went too far. We were joking around. I love Howard and I love doing interviews with him. I didn’t mean for it to go that far.”

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When it comes to her failed marriage, Camille Grammer isn’t getting her panties in a bunch, especially since—according to her—Kelsey’s too busy frolicking in them!

“He likes being with women, but there’s something between us that didn’t click,” the 42-year-old told Stern.

When the Shock Jock asked her if she thought Kelsey was gay—noting her recent wisecrack that his current drag-queen Broadway stint, La Cage Aux Folles, was the right fit for him—Camille denied it, saying “he’s all man!”

But when co-host Robin Quivers took it a step further by asking if the 55-year-old liked to dress in girly attire, that’s when Camille turned coy.

“I’m not saying it…I’m not saying it,” she said unconvincingly amid giggles. “I’m not discussing this now…I’m gonna be smacked with a lawsuit! You’ve got to ask his new [fiancee].”

When Stern asked how Kelsey could possibly fit into Camille’s teensie intimates, she laughed: “He has a little waist. I don’t know what to say!”

Watch a “The Real Housewives of Beverly Hills” Clip:

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Well, apparently, Kelsey knows exactly what to say: Nothing at all. His rep issued a statement via TMZ: “While it is not clear why Camille Grammer continues making public statements about her marriage to Kelsey, it is crystal clear that Kelsey will continue not responding, regardless of content.”

If the cross-dressing “allegations” are true, Mister Frasier (or should we call him Fray Fray?) has some ‘splaining to do…(e.g. Does he prefer satin or lace?)

What do you think of Camille’s shocking insinuations? What’s harder to swallow—her need to reveal damaging info on the private aspects of her marriage or the idea of Kelsey pitter-pattering around in a Victoria’s Secret thong?